In case of a shortage of war supplies Russia will be able to get them from neutral countries--for example, from the United States. But where will Germany get them? What shall she do when her stock of saltpetre runs out? For the time being saltpetre is obtained by all countries from Chile only.
France is an agricultural country which has large supplies of food. Her manufactures are poorly developed, and they are working for a foreign market which will not be closed. Her resources are so large that she will be able to stand the campaign with comparative ease.
Owing to her insular position, England will lose but very little through this war, provided she is able to maintain the supremacy of her navy over the German fleet. The British merchant marine and her manufactures will gain quite considerably.
The public credit of France and Great Britain is inexhaustible, and it will not be restricted to Russia, while she is an ally of these countries.
[Russkia Vedomosti, No. 222, Sept. 27, (Oct. 3,) 1914, P. 3.]
Prof. Migoulin has submitted to the Russian Minister of Finance a scheme for new internal loans to meet the extraordinary expenditures caused by the present war.
It is proposed to enlist the support of various groups of capitalists and of small property holders and to obtain from them about 2,500,000,000 rubles, ($1,500,000,000.)
Four different loans are contemplated. Persons desiring to invest their savings at a small but sure interest rate will be able to buy the certificates at a 5 per cent. loan. These certificates will have a face value of 100 rubles, and they will sell at $90. The interest rate will not be changed within the next fifteen or twenty years. Therefore, the actual interest rate will be 5.56 per cent. on the original investment.
A 6 per cent. loan will cater to those investors who like to place their loans at shorter terms. The certificates of this loan will be sold at premiums. Five-year certificates will be sold at ninety-six for a hundred rubles face value, four-year certificates at ninety-seven, three-year certificates at ninety-eight, two-year certificates at ninety-nine, and one-year certificates at par. This loan will be free from the interest (coupon) tax, but not from the income and inheritance taxes. In case of success one billion worth of these certificates will be issued.